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Shareholders' Equity | 9 Months Ended
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Sep. 30, 2019
Stockholders' Equity Note [Abstract] |
Shareholders' Equity | Shareholders’ Equity AFG is authorized to issue 12.5 million shares of Voting Preferred Stock and 12.5 million shares of Nonvoting Preferred Stock, each without par value. Accumulated Other Comprehensive Income, Net of Tax (“AOCI”) Comprehensive income is defined as all changes in shareholders’ equity except those arising from transactions with shareholders. Comprehensive income includes net earnings and other comprehensive income, which consists primarily of changes in net unrealized gains or losses on available for sale securities. The progression of the components of accumulated other comprehensive income follows (in millions):
|  |  | Other Comprehensive Income (Loss) |  |  |  |
| AOCI Beginning Balance |  | Pretax |  | Tax |  | Net of tax |  | Attributable to noncontrolling interests |  | Attributable to shareholders |  | Other (c) |  | AOCI Ending Balance
Quarter ended September 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net unrealized gains on securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized holding gains on securities arising during the period |  |  | $ | 136 |  |  | $ | (29 | ) |  | $ | 107 |  |  | $ | — |  |  | $ | 107 |  |  |  |  |  |
Reclassification adjustment for realized (gains) losses included in net earnings (a) |  |  | 1 |  |  | — |  |  | 1 |  |  | — |  |  | 1 |  |  |  |  |  |
Total net unrealized gains on securities (b) | $ | 812 |  |  | 137 |  |  | (29 | ) |  | 108 |  |  | — |  |  | 108 |  |  | $ | — |  |  | $ | 920 |
Net unrealized gains on cash flow hedges | 18 |  |  | 9 |  |  | (2 | ) |  | 7 |  |  | — |  |  | 7 |  |  | — |  |  | 25 |
Foreign currency translation adjustments | (13 | ) |  | (6 | ) |  | (1 | ) |  | (7 | ) |  | (1 | ) |  | (8 | ) |  | — |  |  | (21 | )
Pension and other postretirement plans adjustments | (8 | ) |  | 1 |  |  | — |  |  | 1 |  |  | — |  |  | 1 |  |  | — |  |  | (7 | )
Total | $ | 809 |  |  | $ | 141 |  |  | $ | (32 | ) |  | $ | 109 |  |  | $ | (1 | ) |  | $ | 108 |  |  | $ | — |  |  | $ | 917 |
Quarter ended September 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net unrealized gains (losses) on securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized holding losses on securities arising during the period |  |  | $ | (122 | ) |  | $ | 26 |  |  | $ | (96 | ) |  | $ | — |  |  | $ | (96 | ) |  |  |  |
Reclassification adjustment for realized (gains) losses included in net earnings (a) |  |  | (2 | ) |  | — |  |  | (2 | ) |  | — |  |  | (2 | ) |  |  |  |
Total net unrealized gains (losses) on securities (b) | $ | 191 |  |  | (124 | ) |  | 26 |  |  | (98 | ) |  | — |  |  | (98 | ) |  | $ | — |  |  | $ | 93 |
Net unrealized losses on cash flow hedges | (27 | ) |  | (6 | ) |  | 1 |  |  | (5 | ) |  | — |  |  | (5 | ) |  | — |  |  | (32 | )
Foreign currency translation adjustments | (9 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (9 | )
Pension and other postretirement plans adjustments | (8 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (8 | )
Total | $ | 147 |  |  | $ | (130 | ) |  | $ | 27 |  |  | $ | (103 | ) |  | $ | — |  |  | $ | (103 | ) |  | $ | — |  |  | $ | 44 |
Nine months ended September 30, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net unrealized gains on securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized holding gains on securities arising during the period |  |  | $ | 1,073 |  |  | $ | (226 | ) |  | $ | 847 |  |  | $ | — |  |  | $ | 847 |  |  |  |  |  |
Reclassification adjustment for realized (gains) losses included in net earnings (a) |  |  | (13 | ) |  | 3 |  |  | (10 | ) |  | — |  |  | (10 | ) |  |  |  |  |
Total net unrealized gains on securities (b) | $ | 83 |  |  | 1,060 |  |  | (223 | ) |  | 837 |  |  | — |  |  | 837 |  |  | $ | — |  |  | $ | 920 |
Net unrealized gains (losses) on cash flow hedges | (11 | ) |  | 46 |  |  | (10 | ) |  | 36 |  |  | — |  |  | 36 |  |  | — |  |  | 25 |
Foreign currency translation adjustments | (16 | ) |  | (3 | ) |  | — |  |  | (3 | ) |  | (2 | ) |  | (5 | ) |  | — |  |  | (21 | )
Pension and other postretirement plans adjustments | (8 | ) |  | 1 |  |  | — |  |  | 1 |  |  | — |  |  | 1 |  |  | — |  |  | (7 | )
Total | $ | 48 |  |  | $ | 1,104 |  |  | $ | (233 | ) |  | $ | 871 |  |  | $ | (2 | ) |  | $ | 869 |  |  | $ | — |  |  | $ | 917 |
Nine months ended September 30, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net unrealized gains (losses) on securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized holding losses on securities arising during the period |  |  | $ | (662 | ) |  | $ | 139 |  |  | $ | (523 | ) |  | $ | — |  |  | $ | (523 | ) |  |  |  |
Reclassification adjustment for realized (gains) losses included in net earnings (a) |  |  | (4 | ) |  | 1 |  |  | (3 | ) |  | — |  |  | (3 | ) |  |  |  |
Total net unrealized gains (losses) on securities (b) | $ | 840 |  |  | (666 | ) |  | 140 |  |  | (526 | ) |  | — |  |  | (526 | ) |  | $ | (221 | ) |  | $ | 93 |
Net unrealized losses on cash flow hedges | (13 | ) |  | (24 | ) |  | 5 |  |  | (19 | ) |  | — |  |  | (19 | ) |  | — |  |  | (32 | )
Foreign currency translation adjustments | (6 | ) |  | (2 | ) |  | (1 | ) |  | (3 | ) |  | — |  |  | (3 | ) |  | — |  |  | (9 | )
Pension and other postretirement plans adjustments | (8 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (8 | )
Total | $ | 813 |  |  | $ | (692 | ) |  | $ | 144 |  |  | $ | (548 | ) |  | $ | — |  |  | $ | (548 | ) |  | $ | (221 | ) |  | $ | 44 |
(a)The reclassification adjustment out of net unrealized gains (losses) on securities affected the following lines in AFG’s Statement of Earnings:
| OCI component |  | Affected line in the statement of earnings |
| Pretax |  | Realized gains (losses) on securities |
| Tax |  | Provision for income taxes |
(b) | Includes net unrealized gains of $55 million at September 30, 2019 compared to $59 million at June 30, 2019 and $58 million at December 31, 2018 related to securities for which only the credit portion of an other-than-temporary impairment has been recorded in earnings.
(c) | On January 1, 2018, AFG adopted new guidance that requires all equity securities other than those accounted for under the equity method to be reported at fair value with holding gains and losses recognized in net earnings. At the date of adoption, the $221 million net unrealized gain on equity securities classified as available for sale (with unrealized holding gains and losses reported in AOCI) under the prior guidance was reclassified from AOCI to retained earnings as the cumulative effect of an accounting change.
Stock Incentive Plans Under AFG’s stock incentive plans, employees of AFG and its subsidiaries are eligible to receive equity awards in the form of stock options, stock appreciation rights, restricted stock awards, restricted stock units and stock awards. In the first nine months of 2019, AFG issued 232,635 shares of restricted Common Stock (fair value of $99.28 per share) under the Stock Incentive Plan. AFG did not grant any stock options in the first nine months of 2019. Total compensation expense related to stock incentive plans of AFG and its subsidiaries was $5 million and $6 million in the third quarters of 2019 and 2018, respectively, and $17 million in both the first nine months of 2019 and 2018.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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